Gold Demand Holds Steady Despite Falling Investment

The World Gold Council reported that investment demand for gold fell in the second quarter, despite central bank buying strengthening. According to Juan Carlos Artigas, global head of research at the World Gold Council, gold demand was 'very steady' compared to the same period last year.

Central banks continued to view gold as an important reserve asset, particularly during times of heightened geopolitical and economic uncertainty. Nearly half of central bankers still plan to increase their gold reserves over the next 12 months, citing reserve diversification as a key reason for buying.

The report also highlighted Asian demand for gold, which was driven by countries such as China, Japan, South Korea, and Singapore. Over-the-counter demand increased, supported in part by Asian buying, with gold prices moving higher during Asian trading hours.